Playbook #107: Multifamily Real Estate (Revisited)
🖼️ The Big Picture
Multifamily apartment buildings are a long-time favorite of real estate investors. They offer consistent monthly cash flow, are lower risk than other asset classes (since people will always need a place to live), and can be relatively passive with good management.
In this issue, we’re going to take a fresh look at multifamily complexes, as well as expand our scope beyond our first multifamily and apartment complexes playbooks to look at larger deals.
Like other asset classes, values of multifamily properties exploded during the pandemic.
You’ve probably heard that the #1 rule in real estate is that to make money when you buy — you must “buy right.” Well, between the cheap money available and investors concerned about inflation spiraling out of control, unfortunately… many people “bought wrong.”
As of the time of writing, we’re staring down a potential wave of commercial real estate debt issues. In fact, one expert recently said that the motto for multifamily operators now is “survive until 2025.”
Remember, wealth is never destroyed — only transferred. And as with any recession or downturn, there will be a significant transfer of wealth if this occurs, so if you want to go down this rabbit hole, consider getting familiar with how foreclosures and rescue capital work.
As an investor, there will likely be some great opportunities to get involved in what is… and probably always will be, one of the best real estate asset classes. However, you need to know what you’re doing, and you need a great team behind you.
Let’s take a look at where multifamily real estate is today, where it could go in the next few years, and the opportunity for you to ethically CAPITALIZE on it.